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2016 (4) TMI 160 - ITAT AMRITSAR

2016 (4) TMI 160 - ITAT AMRITSAR - [2016] 47 ITR (Trib) 1 - Donations in golaks - AO proposed to tax the anonymous donations in accordance with the provisions of Section 115BBC(1), as against the assessee’s version that the same being cash received through golak, did not partake the character of the anonymous donations covered u/s 115BBC(2) of the Act - CIT(A) has erred in law in deleting the addition made by the AO by invoking the provisions of section 115BBC(1)(i) - Held that:- The objects of .....

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nted money’ which was brought in as Tax Free Income in the hands of the Charitable Trusts and this law was never meant for taxing the Petty Charities. The Legislature intended to tax the unaccounted money or black money which was brought in the books of charitable trusts in bulk and this law was not meant for taxing the small and general charities collected by the Genuine Charitable Trusts.

As contended, the concept and importance of charity, against the backdrop of the Indian Society .....

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the addition for both the assessment years under consideration. - Decided in favour of assessee - ITA Nos. 212 & 431(Asr)/2014 - Dated:- 25-2-2016 - SH. A.D. JAIN, JUDICIAL MEMBER AND SH. T.S. KAPOOR, ACCOUNTANT MEMBER For The Appellant by: Smt. Ratinder Kaur, DR For The Respondent by: Sh. Salil Kapoor, Advocate ORDER PER A.D. JAIN, JM: These are the Department s appeals for the assessment years 2010-11 & 2011 -12 against the ld. CIT(A) s action of deleting addition of ₹ 1,16,89,535 ( .....

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DT guidelines. After examining the books of account produced and after going through the detailed list of donations in golaks for the AY 2010-11, the AO noticed that the assessee was stated to be in receipt of golak donations amounting to ₹ 1,99,86,858/-. As per the AO, the total annual donations of ₹ 16,59,47,049/- comprised of the following items: I) donations received in cash Rs.9,06,53,538/- 2) donations received in kind ₹ 83,57,943/- 3) Grants in aid ₹ 13,43,631/- 4) .....

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xplain as to why the same may not be taxed in accordance with the provisions of section 115BBC of the Act. In response thereto, the assessee filed reply dated 26.02.2013, as incorporated at pages 4 & 5 of the assessment order. The only difference of opinion arose between the assessee s version and the AO s opinion based on the dictionary meaning of the word charity , as given in the Oxford Dictionary, the AO proposed to tax the anonymous donations in accordance with the provisions of Section .....

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xtracted by the CIT(A) in his order for the assessment year 2010-11, as follows: 5.1 As mentioned by the assessee, a Godly Man Bhagat Puran Singh Ji had started helping the homeless, disabled, handicapped, crippled, insane, mentally retarded, young or old persons, suffering from incurable disesases, after migration of 1947 and many others got motivated and attracted by his efforts and thus the Appellant Society came in to existence with the sole object of helping such persons and it was allotted .....

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the provisions of Section 115BBC(1) were not applicable to the charities received by Pingalwara Society through Society through Golaks or/otherwise. 5.2.1. All the inmates of the Pingalwara Society were hundred percent orphans as they had no relations to support them and they were provided, shelter, food and clothing by the Pingalwara Society only absolutely free of cost i.e without charging any fee. It was itself a religious under any religion of the World. 5.2.2 The society was rendereing Mana .....

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on, Zakaat has been ordered and mentioned 30 times in the Holy Book of Quran. Copy of Print of one reference is attached as specimen. SIKHISM Under Sikhism, great stress has been laid by all groups on Sewa i.e. service to Manking and have talked the followers to spend Dasvand for charitable purposes. 5.2.3 Dasvand is one of the orders from the Seikh Gurus and is part of Sikh Religion. It literally means tenth part of the income should be given for religious purpose including to help the poor. It .....

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asvand har sikh nu dena farz dasseya hai. Satguran ne amritdhari Sing layee taan khas taur te hidayat kiti hai. HINDUISM-Some Quotations In Chapter 9 of Menu-Samriti which is the source and foundation of 5.2.4 Hindu Law, it is laid down in Sanskrit. Saruesham Api Tu Nyayam Datu Shaktya Manishina Grasachhadan Mat Yantam Patito Hay Dadat Bhavet. Hindi Translation Which means Bhudhiman Manushaya ka Kartavaya hai ki Viklangon ka aayu prayant yathashakti bhojanuastra aadi aniuarya roop se dena hi nya .....

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of demarcation in the Hindu system between religion and charity. Indeed, charity is regarded as part of religion. 5.4. Reliance is already placed on the case of CIT vs. Barkate Saifiyah Society reported at 213 ITR 492 (Guj.) and findings reproduced in our letter dated 14.10.2013. 5.5. As already submitted in our earlier letter, the provision of taxing anonymous donations is not applicable to trusts or institutions wholly for religious purpose or wholly for charitable and religious purpose. The .....

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n support thereto and have also gone through the AO s findings contained in his above referred assessment order. The appeal is hereby disposed off by recording adjudications and by giving consolidated findings:-: 6.1. Hon ble Gujarat High Court had discussed issue of religious purpose and charitable purpose in the case of CIT v. Barkate Salfaijhia Society, reported in 213 ITR 492 [Guj.] from which discussion, relevant to present issue is being reproduced hereunder:- 1. The Phrase religious purpo .....

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is a religious object, while to others it may be a charitable purpose, according to Hindu religious activity. Similarly, Khairat under the Mohamedan law woidd be considered to be a religious activity. The said activities may be for a charitable purpose to some. Hence, in many cases, both the purposes may be overlapping. The purposes may have both the elements, charity as well as religious. 4. While dealing with what is religious or charitable purpose it is observed by the Supreme Court in the c .....

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long time adopted the technical meaning of charitable trusts and charitable purposes which the courts in England have placed upon the term charity in the status of Elizabeth, and, therefore, all purposes which according to English law are charitable will be charitable under Hindu law. The Hindu concept of charity is so comprehensive that there are other purposes in addition which are recognized as charitable purposes. Hence, what are purely religious purposes and what religious purposes will be .....

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gifts and the latter meant charities. Among the Istha acts are Vedic sacrifices, gifts to the priests at the time of such sacrifices, preservations of vedas, religious austerity, rectitude, vaisvadev sacrifices and hospitality. Among the Purta acts are construction and maintenance of temples, tanks, wells, planting of groves, gifts of food, dharamshalas, places for drinking water, relief of the sick, and promotion of education and hearing, (cf Pandit Prannath Saraswati s Hindu Law of Endowments .....

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purpose under the Incometax Act goes much further than the definition of charity to be derived from the English cases because it specifically includes medical relief and embraces all objects of general public utility subject to the condition imposed by the restrictive words not involwng the carrying on of any activity for profit . While dealing with section 11, a Division Bench of this court in the case in the case of Addl. CIT v. A.A. Bibijiwala Trust (1975) 100 ITR 516, has observed as follows .....

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tion of the Mullaji Saheb is bound down by the two factors, namely, that this is a wakf, a dedication by a Mussalman of property for purposes which, according to the notion of Mussalmans, are pious, religious or charitable, and secondly, it must be used for Dawat purposes, that is, for purposes which go to benefit the Dawoodi Bohra community. With these two limitations operating on him, even the apparently wide discretion conferred upon the Mullaji Sahab as Dai-ul- Mutlak for the time being is c .....

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are wholly religious or wholly charitable. Even if the trusts are partly religious and partly charitable, so long as no part of the income or corpus can be utilized for a purpose which is not either charitable or religious, there is no doubt that the exemption u/s ll(l)(a) will be available to the assessee. In the instant case, we find that, in spite of the apparently wide language of the clauses of the dead of trust, in fact reading the trust deed as a whole, it transpires, particularly in the .....

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b can use the corpus or the income of this fund . 5. The ld. CIT(A) deleted the addition by holding as under: 6. I have carefully considered the appellant s submissions in the backdrop of case laws quoted in support thereto and have also gone through the AO s findings contained in his above referred assessment order. The appeal is hereby disposed off by recording adjudications and by giving consolidated findings:-: 6.1 Hon ble Gujarat High Court had discussed issue of religious purpose and chari .....

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an the field covered by the words religious purpose . Further, in some cases, even a religious activity by a particular sect would be a charitable activity; for some, supply of fodder to animals and cattle is a religious object, while to others it may be a charitable purpose, according to Hindu religious activity. Similarly, Khairat under the Mohamedan law woidd be considered to be a religious activity. The said activities may be for a charitable purpose to some. Hence, in many cases, both the p .....

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indu piety found expression in gifts to idols to religious institutions and for all purposes considered meritorious in the Hindu social and religious system. Therefore, although courts in India have for a long time adopted the technical meaning of charitable trusts and charitable purposes which the courts in England have placed upon the term charity in the status of Elizabeth, and, therefore, all purposes which according to English law are charitable will be charitable under Hindu law. The Hindu .....

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itable purposes are impelled by the desire to acquire religious merit. 'According to Pandit Prannath Saraswati, these fell under two heads, Istha and Purta. The former meant sacrifices, and sacrificial gifts and the latter meant charities. Among the Istha acts are Vedic sacrifices, gifts to the priests at the time of such sacrifices, preservations of vedas, religious austerity, rectitude, vaisvadev sacrifices and hospitality. Among the Purta acts are construction and maintenance of temples, .....

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or both charitable and religious purposes. Hence the words trust for charitable purpose would include even trust for advancement of religion. At this stage, we would note that the definition of charitable purpose under the Income-tax Act goes much further than the definition of charity to be derived from the English cases because it specifically includes medical relief and embraces all objects of general public utility subject to the condition imposed by the restrictive words not involwng the ca .....

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ettled upon trust must be used for Dawat purposes, that is, for the benefit of the Dawoodi Bohra community. Though the words of clauses 6,7 and 8 are very wide in terms, in fact, that apparently wide discretion of the Mullaji Saheb is bound down by the two factors, namely, that this is a wakf, a dedication by a Mussalman of property for purposes which, according to the notion of Mussalmans, are pious, religious or charitable, and secondly, it must be used for Dawat purposes, that is, for purpose .....

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exemption under section 11(1 )(a) of the Act of 1961. We must take it clear that the real controversy between the parties is regarding exemption u/s 1 l(l)(a) of the act of 1961 and not whether the trusts are wholly religious or wholly charitable. Even if the trusts are partly religious and partly charitable, so long as no part of the income or corpus can be utilized for a purpose which is not either charitable or religious, there is no doubt that the exemption u/s ll(l)(a) will be available to .....

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2, in Advocate-General of Bombay v. Yusuf Ali, AIR 1921 Bom 338, and, in our opinion, it is only within the four corners of Dawat purposes as recognized by the Dawoodi Bohra community that the Mullaji Saheb can use the corpus or the income of this fund . 7. Thus, it can be seen that from the fact of the assessee trust and the case law discussed above that the assessee Trust has been established wholly for religious and charitable purposes. The Hon ble Supreme Court has held thatjdiere is nomine .....

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fore any university or other educational institution, or any hospital or other medical institutions run by such trusts or institution. In view of above, provisions of Section 115BBC of the IT act, 1961 are not applicable to the assessee trust. In view of the above, the addition made by the Assessing Officer, of ₹ 1,16,89,535/- is hereby deleted. 6. The ld. DR contended that the ld. CIT(A) has erred in law in deleting the addition made by the AO at ₹ 1,16,89,535/- by invoking the prov .....

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ch comes under the provisions of section 115BBC(2)(b) of the I.T. Act, 1961 and they cannot be said to be anonymous donations; that charity is different from donation and in the present case, the amounts received represent charity and not donation. It has been submitted that in the earlier years, no such addition has been made by the Department and the facts in the year under consideration have not undergone any change from the said earlier years. 8. Having heard the rival contentions in the lig .....

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ine of demarcation in the Hindu system between religion and charity. Again, no contrary decision has been cited or brought on record by the department. 10. It is on the above basis, that the ld. CIT(A) has held that religious purpose also includes relief to the poor, education, and medical relief, etc. 11. In CIT vs. Paramhans Ashram Trust , 203 ITR 711 (Raj.), the Hon ble Rajasthan High Court held that the trust was created for the objects (1) maintenance of the existing dharamshalas, help of A .....

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h Court was as under: Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding the decision of the Appellate Assistant Commissioner that the assessee is a public charitable and religious trust and its income is entitled to exemption u/s 11 of the Income Tax Act, 1961. The Hon ble High Court had answered the question in favour of the assessee. 12. In Bombay Panjrapole Trust, Mumbai vs. Department of Income Tax , vide order dated 15.05.2013, passed by the .....

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39;s reply. After considering the reply of the assessee, AO added (Dharmau Box Collection) ₹ 5,80,980/- and ₹ 74,02,187/- (part of other collection to the total income of the assessee. 4. Assessee preferred an appeal before the Fist Appellate Authority (FAA). After considering the submissions of the assessee, FAA held that the AO had nowhere said that the activity of the appellant trust was not for charitable purpose, that AO had also not said that the trust had anywhere indulged in .....

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fied in invoking the provision of Section 115BBC of the Act, for taxing anonymous donations, which itself was not permitted as per Section 115BBC(2) of the Act, that appellant trust hold the registration u/s. 12A of the Act in continuation and that the amount of ₹ 84,36,407/- had been utilised by appellant trust for the cause of appellant trust only, that entire receipt was utilised by appellant trust for the purpose of object of the trust, that purpose behind introduction of Section 115BB .....

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aintained the details of such donations received on purchase of green grass, laddu and dana of ₹ 150/-, wherein the trust maintained account of identity of prayer indicating the name and address of such persons, that by any stretch of imagination, donations could not be considered as misuse of provisions in receiving donation or unaccounted money received by the assessee-trust. Following his own order for the year 2007-08, FAA deleted the addition made by the AO. 13. The Tribunal dismissed .....

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been inn existence for the last 176 years doing and performing a public good and service to humanity with sincere and intentions, not even asking people to make contributions. Whatever contributions by way of donations are coming, are coming in small donations, which are put by public at large in donation boxes (dharmau). 14. In CIT vs. Dawoodi Bohara Jamat 364 ITR 31, the Hon ble Supreme Court observed as under: The assessee was a registered public trust under the M.P. Public Trusts Act, 1951. .....

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ribunal after going through the objects of the assessee-trust came to the conclusion that the assessee was a public religious trust as the objects of the trust were wholly religious in nature and thus, the provisions of section 13(l)(b) which were otherwise applicable in case of charitable trust would not be applicable. The Tribunal therefore, held that the assessee was entitled to claim registration under sections 12A and 12AA. The High Court primarily, was of th .....

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Hon ble Supreme Court held as follows: 34. Indubitably, the word 'charity' connotes altruism in thought and action and involves an idea of benefiting others rather than oneself. (Andhra Chamber of Commerce (supra)). It also cannot be lost sight of that the supreme goal of all religions is philanthropy which could be manifested in various forms. It is held that gifts for religious purposes are prima facie gifts for charitable purposes. (Schoales v. Schoales [1930] 2 Ch. 75 (CA); White v. .....

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, godly, devout." In Kanga, Palkhivala and Vyas, Law and Practice of Income Tax, Vol. 1, Ed. 9th (at p. 544) religious purposes are indicated to include the advancement, support or propagation of a religion and tenets. Thus, a religious purpose would be one relating to a particular religion and broadly would encompass objects relating to observance of rituals and ceremonies, propagation of tenets of the religion and other allied activities of the religious community. An example of such woul .....

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xample, the practice of optional charity in the form of Khairat or Sadaquah under Mohammadan Law would be covered under both charitable as well as religious purpose. Further, while providing food and fodder to animals especially cow is religious activity for Hindus, it would be charitable in respect to non- Hindus as well. Similarly, service of water to the thirsty would find mention as religious activity in sacred texts and at the same time would qualify as a charitable activity. 37. The Tribun .....

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ed as highly religious ' ceremony. Reference is also made that who will give to the people or poor then Allah will give them in return and, i.e., who will give loan then Allah will give double to them. Likewise, for helping the needy people for religious activities and to carry out religious activities or spend for good, spending wealth in the way of Allah, bestowing mercy, teaching were considered to be highly religious activities. On going through several true pages of Holy Quran written b .....

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l with those of 'Dawat-e- Hadiyah'. For Dawoodi Bohras, true path shown by the pfophet is the one indicated and shown by their living guide Dai-al-Mutlaq of the time who is the living and visible guide for Dawoodi Bohras. It is an undisputed fact that for the people believing in Islam, writings in Quran are words of J Allah for them. The directions given in the Holy Quran are considered by the people of Islamic faith . as orders from Allah and the people of Islamic faith obey such orders .....

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e other objects, in our view the fact that the said objects trace their source to the Holy Quran and resolve to abide by the path of godliness shown by Allah would not be sufficient to conclude that the entire purpose and activities of the trust would be purely religious in color. The objects reflect the intent of the trust as observance of the tenets of Islam, but do not restrict the activities of the trust to religious obligations only and for the benefit of the members of the community. The P .....

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ntended activities in the objects. 39. The provision of food to the public on religious days of the community as per object (a) and (b), the establishment of Madarsa and organizations for dissemination of religious education under object (d) and rendering assistance to the needy and poor for religious activities under object (e) would reflect the essence of charity. The objects (a) and (b) provide for arrangement for nyaz and majlis (lunch and dinner) on the religious occasion of the birth anniv .....

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us events of the Dawoodi Bohra community do not restrict the benefit to the members of the community .-Neither the religious tenets nor the objects as expressed limit the service of food on the said occasions only to the members of the specific community. Thus, the activity of Nyaz patformed by the respondent-trust does not delineate a separate class but extends the benefit of free service of food to public at large irrespective of their religion, caste or sect and thereby qualifies as a charita .....

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. IR 54 TC 446, has observed that "the study and dissemination of ethical principles and the cultivation of rational religious sentiment" would fall in the category of educational purposes. The Madarsa as a Mohommedan institution of teaching does not confine instruction to only dissipation of religious teachings but also contributes to the holistic education of an individual. Therefore, it cannot be said that the object (d) would embody a restrictive purpose of religious activities onl .....

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held as follows: 10.7. On a consideration of the above alongwith the findings recorded in the assessment order which have been extracted in para 2 & 3 of this order, it is seen that while considering the explanation qua the anonymous donations which was claimed to be voluntary donations by the assessee, the tax authorities have come to the incorrect conclusion that since the assessee was engaged in spiritual lectures which according to their understanding of the context in which the explana .....

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ase the tax authorities have proceeded on a very narrow and incorrect understanding in holding that the assessee trust was engaged in spreading spirituality and since section115BBC only exempts religious trust, a trust allegedly imparting spiritual knowledge was consequently not contemplated as an exception by the Legislature as much as it consequently is barred to claim exemption vis-à-vis the anonymous donation. 10.8. We have extracted the objects of the trust and on a careful considera .....

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m people, destitutes, illiterate, handi-capped, mentally retarded, providing food and shelter to poor and needy, night shelter, nari-niketan/ mahila ashram, weaker sections and all other groups who can be included in the phrase in "need of physical, mental and financial help" including and not exclusively affected on account of natural calamities. etc. like flood, fire, famine, drought, earth-quakes, storm, accident, pestilence, drought, epidemics etc. A perusal of the above enumerated .....

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for them cannot either be under-estimated or over-emphasized and has to be considered in the proper perspective. The fact that these arguments/philosophy on the touchstone of science may fail and to some of us non-believers maybe only rhetoric is not a relevant consideration as what cannot be cured has to be endured, for a person on his last breath is no reason to callously subscribe to the philosophy that such a person should be deprived of the psychological comfort of believing that somewhere .....

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lter etc and is also giving lectures on spirituality was not the kind of assessee contemplated under section 115BBC who was to be visited by the rigours of the said section. 10.9. We also hold on a consideration of the terms "religion"; "religious" "spirituality" and "spiritual", that in the context of the present case, no lengthy deliberations on the aforesaid terms is necessary. Suffice it to say that to our understanding the concept of religion divorced .....

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sent proceedings. It has been stated that during these lectures voluntary donations by the attendees have been made which constitutes the anonymous donations. The department it is seen has considered these voluntary donations exigible to tax on the understanding that the assessee trust was not fulfilling the requirements of a public religious trust. We have seen and discussed at length and come to a conclusion that the objects of the trust and the context in which spiritual lectures espousing th .....

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ts to take care of the weak and the needy. Accordingly considering the entire conspectus of facts, circumstances and position of law, we hold that the Revenue has incorrectly applied section 115BBC to the facts of the assessee's case. 10.10. In order to come to the said conclusion, we have relied upon the observation and findings of the Apex Court in the case of CIT, Ujjain vs Dawoodi Bohara Jamat and the ratio decidendi laid down therein which holds that it is the objects of the trust which .....

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let live as it is not a static religion but a living religion, a way of life. The religion of the community by its very practices, philosophy and tenets has celebrated and revered the importance of not only human life but also animal life and vegetation life so much so that even the inanimate is celebrated and revered consequently the environmental role and importance is emphasized in everyday practices as it too is regarded as a living environment, a living entity. Thus following the ratio of t .....

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ngwith the Circular No.-14 and the observations and ratio decidendi of the Apex Court in Cit, Ujjain vs M/s Dawoodi Bohara Jamat and considering the rival stand of the parties in the context of the above on the facts of the present case, we hold that the claim of the assessee deserves to be allowed. 10.12.Before parting, we would briefly address the arguments of the Ld. Sr. DR namely that the trust should demonstrate by activities how the funds have been applied. It is seen that the said issue h .....

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ments, Ld. Sr. DR has referred to the good old times where "Rishis" were not in the habit of collecting donations. Though the said argument was herself contradicted by the Ld. Sr. DR as she also stated that "guru dakshina" as the price for teaching/ taking a disciple/initiating a disciple was accepted, accordingly the argument advanced can be ignored however, we feel it necessary to point out that philanthropy is encouraged by almost all religions and the mendicants and sages .....

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story which has been carried through by word of mouth and also has a very important role in understanding history of people and nations. Thus not only mythology supports this general belief of an ideal donor who remains unidentified but even various religious written texts and treaties also idealise a donor who remains unidentified. The statute it is seen does not bar this in the case of wholly religious purposes trust or in the case of wholly religious and charitable purposes trust ....unless t .....

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t proceedings. It is seen that the decision of the Apex Court in CIT v. Andhra Chamber of Commerce, 55 ITR 722 (SC) has no relevance to the facts of the present case. Apart from the fact that the decision proceeds on entirely different facts it is also seen that the issue has been decided in assessee's favour on the facts of that case. Similarly the decision of the Patna High Court in Bihar Institute of Mining and Mines Surveying vs CIT 208 ITR 608 (Patna) again has no relevance to the prese .....

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ennai) that when education is carried on commercial lines it cannot claim the status of a charitable institution. None of these decisions help the Revenue in any manner whatsoever. The reliance placed upon the CIT, Ujjain vs Dawoodi Bohra Jamat by the Ld. Sr. DR in as much as proven facts be considered in fact goes against the arguments of the Ld. Sr. DR as the proven facts on record are that the AO holds that the assessee is covered within the scope of "general public utility" and qua .....

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GARDING. Dear Sir, In continuation of this office letter No: 1363/13, dated 05-02-2013. 1. That All India Pingalwara Charitable Society is a Charitable Society registered under Society registration Act 1860. Its objects are clear and transparent. The whole body/members of the Society work for welfare of the society. 2. That this society by its name as All India Pingalwara Charitable Society means serving and looking after the persons who have suffered from different diseases, in the form of inse .....

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fferent places/Gurdwaras/Bus Stands as offered by different persons for the welfare of the physically, mentally and visually challenged persons - men and women, old and young including those suffering from incurable diseases like, aids, cancer, hepatitis, T.B., etc., including abandoned children. 4. That the charity offered as mentioned in para(3) above is duly accounted for in tire books of accounts. That charity received is not anonymous donations. This is a charity and not any anonymous donat .....

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address of the place of GOLAKS from where the cash is received is duly recorded in the account-books. This cash is heated as CHARITY not as anonymous donations as treated by your good-self. On the GOLAK itself is written DAAN-PATRA (means CHARITY-BOX). When a person puts corns and very small amount in the GOLAK, he/she cannot mention his/her identity with the cash put in the GOLAKS. 7. That the Charity/Donation given by the people is meant for the service of the PINGLA persons (DISABLED/HANDICAP .....

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ithfully, Sd/- 26/02/2013 (Dr. Inderjit Kaur) 19. As per its Memorandum of Association: AMENDED COPY MEMORANDUM OF ASSOCIATION OF ALL INDIA PINGALWARA SOCIETY (Incorporated under Act. XXI of 1860) 1. The name of the Society is "All India Pingalwara Charitable Society (Regd.), Amritsar." 2. The registered office of the society shall be situated in Amritsar in the state of Punjab (India). 3. The objects for which the society is established are;- (i) To look after, to help'and take ca .....

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or all inmates. (iii) To acquire and purchase land and buildings and to set up, establish and run Pingalwaras for the beneficiaries. (iv) To propagate the cause of the Society through direct or indirect publicity such as books, pamphlets, placards, posters, paintings, painted black-boards, cinema slides, blocks and advertisements .through newspapers or magazines. v) (a)' To open Schools anywhere in India for imparting free education to the poor strata of the society. b) To open Schools for i .....

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ng.on the objects of the Society. " . Rules and Regulations of All India Pingalwara Charitable Society (i) That tills society by name "All India Pingalwara Society" was formed under the pattonage of Late Bhagat Puran Singh Ji the founder thereof for the purpose mentioned in Article 3 of the Memorandum of Association of the society. (2) That the society shall consist: of the following seven members in all, including the following office bearers:- 1 Dr. Inderjit Kaur, Dhurl Gate,San .....

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ck, disabled, mentally challenged and old men and women. These inmates are accommodated in branches of Pingalwara at Amritsar, Pandori, Goindwal, Jalandhar, Sangrur and Palsora (Chandigarh). b. Free medicines to the poor and needy people. c. Free help (Tricycles etc) to the handicapped. d. Medical and material aid to the victims of natural calamities. e. Artificial Limbs are provided free of cost to all needy person. f. Physiotherapy centre for indoors Patients. g. A home for the Senior Citizen .....

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y challenged educable inmates of the Pingalwara. 142 children get individual attention, care and love here. d) Bhagat Puran Singh Adarsh School for the village poor of the Quadian area. This school is situated at Buttar Kaian and provides free education to 362 students. e) Bhagat Puran Singh School, Panj Peer Amritsar for Slum. It has 56 students. f) Free books for the poor and needy students. Environment: a) Vigorous drive to plant trees every year. b) Maintenance of a nursery to provide free s .....

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n Health-2006 e) Workshop on Natural Farming-2006 f) Seminar on AIDS Awareness-2007 g) Bhagat Puran Singh Memorial Seminar Ecological Challenges and Social Responsibilities -2008. Social: a) Distribution of free literature on Religious, medical, social, ethical and environmental issues. b) Printing & free distribution of literature on issues such as living habits, drugs, health, positive thinking- aspects which improve a human beings quality of life. Miscellaneous: a) During the devastating .....

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kets to J&K border residents who had vacated their homes on account of across the border shelling and terrorism. d) Blood Donation Camps are organized every year at the Pingalwara on Bhagat Puran Singh ji Barsi Celebration Day and donated to the Govt. Hospital, Amritsar and Sri Guru Ram DassCharitable Hospital, Amritsar. 110 units of blood was collected during the camp in August 2011. e) A Gaushala at Manawala Branch housing more than 100 cows. f) Cremation of unclaimed dead bodies. g) Donat .....

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TECH/80G/2009- 10/129 dated 17/20 April 2009. c) PAN Number of the All India Pingalwara Charitable Society is AAATA 2237R d) Pingalwara has been exempted from payment of.VAT for all its purchases vide Govt, of Punjab Notification No. S.Q.36/P.A.8/2005/S.8/2011 dated 25th April, 2011. e) FCRA (Foreign Contribution Regulation Act) 1976 Registration No. of Pingalwara is 115210002 The donations made to Pingalwara are exempt from Income Tax under Section 80G of I.T. Act. 1961 21. Section 115BC of the .....

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referred to in section 11, includes any income by way of any anonymous donation, the income-tax payable shall be the aggregate of- (i) the amount of income tax calculated at the rate of thirty per cent on the aggregate of anonymous donations received in excess of the higher of the following namely:- (A) five per cent of the total donations received by the assessee; or (B) one lakh rupees, and (ii) the amount of income-tax with which the assessee would have been chargeable had his total income be .....

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dical institution run by such trust or institution. (3) For the purpose of this section, "anonymous donation" means any voluntary contribution referred to in sub-clause (iia) of clause (24) of section 2, where a person receiving such contribution does not maintain a record of the identity indicating the name and address of the person making such contribution and such other particulars as may be prescribed." 22. This section was inserted in the Income Tax Act by Finance Act, 2006 a .....

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ax Act subject to fulfillment of certain conditions. In order to tax unaccounted money being contributed to these institutions by way of religious trusts or institutions is exempt under the Income Tax Act subject to fulfillment of certain conditions. In order to tax unaccounted money being contributed to these institutions by way of anonymous donations, it is proposed to insert a new section 115BBC so as to provide that any income by way of anonymous donations of the entities referred to in that .....

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ties collected by the Genuine Charitable Trusts. 24. The object of the amendment has further been made clear by the Hon ble Finance Minister, in his Budget Speech, reported at 281 ITR (St.) 57 in the said ITR. The relevant para 168 thereof reads as under:- 'The Standing Committee on Finance has expressed concern that many charitable institutions misuse the provisions of the Income-tax Act. I propose to focus on one misuse, namely, receiving anonymous or pseudonymous donations. Accordingly, I .....

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ovisions of section 115BBC, as follows: 25.2 With a view to prevent channelisation of unaccounted money to these institutions by way of anonymous donations, a new section 115BBC has been inserted to provide that any income of a wholly charitable trust or institution by way of anonymous donation shall be included in its total income and taxed at the rate of 30 per cent. Anonymous donation made to wholly charitable and religious trusts or institutions, i.e. mixed purpose trusts or institutions sha .....

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ch contribution and such other particulars as maybe prescribed. 25.4 Consequential amendments have been made in section 10(23C) and section 13 to provide that any income by way of any anonymous donation which is taxable under section 115BBC, shall be included in the total income of the assessee. 26. Moreover, as contended, the concept and importance of charity, against the backdrop of the Indian Society, has been in existence from time memorial in all religions, without exception. The assessee, .....

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